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2023 (7) TMI 457 - PUNJAB & HARYANA HIGH COURTTP Adjustment - addition of management fee paid to foreign Associate Enterprises - disallowance made u/s 40A (2) (b) on account of payment of administrative charges paid to TACL - excessive or unreasonable expenditure - ITAT deleted additions -HELD THAT:- Appeal of the assessee was accepted by the Tribunal by setting aside the order of AO passed u/s 143 (3) r.w.s.144C by holding that the TPO for the AY 2008-2009, 2009-2010 & 2011-2012 has accepted the transaction of payment of management fees paid to NLC by NLT and therefore the same having been made entirely for business consideration incurred wholly and exclusively for the purposes of business. Hence no addition was held to be sustainable for the assessment year 2010-2011. Disallowance made u/s 40A (2) (b) on account of payment of administrative charges paid to TACL - excessive or unreasonable expenditure - Tribunal recorded that the AO had failed to discharge the onus as per the mandate of the provisions of Section 40A (2) - assessee i.e NLT had received services from TACL in respect of which payment had been made as per documentary evidence on record and thus, there was no warrant for disallowance paid to TACL by the assessee when the payment was adjudged on the principle of commercial expediency when viewed from the point of view of a prudent businessman. The present appeal filed by the department/revenue thus deserves to be dismissed in view of principle of consistency and rule of finality, in view of judgments i.e CIT vs. Dalmia Dadri Cement Ltd. [1969 (11) TMI 16 - PUNJAB AND HARYANA HIGH COURT], Radhasoami Satsang vs. CIT [1991 (11) TMI 2 - SUPREME COURT], CIT vs. Girish Mohan Ganeriwala [2002 (10) TMI 61 - PUNJAB AND HARYANA HIGH COURT] - No substantial question of law
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